WHITE HORSE MANAGEMENT: Leadership the way it was meant to be

1
WHITE HORSE MANAGEMENTLeadership the way it was
meant to be

• TEC - March 2002
• David A. Goldsmith
• MetaMatrix Consulting Group, LLC.
• www.metamatrixconsulting.com

2
You as a leader and manager would be more
successful if
3
I could

• Build more effective teams
• Increase profitability
• Eliminate firefighting
• Make better decisions
• Work with less people and get more done
• Get others to see the vision
• Drive down costs
• Get everyone on the same page
• Learn how best to manage
• Etc.

4
and our hope is

• The firm would be faster
• Have motivated employees
• Everyone would set goals
• Youd be a focused organization
• You would have tools
• Decrease stress
• New ideas would be generated
• Your firm will change
• Get to market faster
• We will be more profitable
• Expand your business
• Youd earn more

5
That is the reason the three most requested
business topics are

• Motivation how do you get others to do what you
  want them to do or need them to accomplish?
• Change Management how do you create change
  within an organization?
• Future how do you predict the future so as to
  be ready to take advantage of the opportunities?

6
Unfortunately the answers are not the solutions
that create the change the fastest Can you
guess?
7
Stories - Service Examples

• Courtyard Marriott

• Auto Dealership

Whats the difference between the firms?
8
Stories - Service Examples

• Courtyard Marriott
• Product is a service
• Systems are stressed
• Management involved
• Customer centered
• Individuals participated
• Expectations higher
• Reward system
• Main office involved

• Auto Dealership
• Product is a service
• Systems not similar
• Lack of management
• Firm centered
• Employees hiding
• No controls
• No rewards
• Absent main office

9
Bill Marriott Leaders create and follow systems
like salespeople follow scripts. Its a tool bag
to address business
10
Need to be able to

• Plan strategies and tactics
• Develop new product and services
• Utilize and implement technology
• Sell their ideas
• Create alliances
• Build systems and utilize tools
• Read the future

11
History of Leadership StrategyWhy its so
important..
12
Where did strategy come from?

• What were the largest organizations in the world
  prior to 1870?
• Military
• Method of winning at battle
• Method of establishing leadership
• Insured survival
• Great Strategists
• King Arthur Knights of the Round Table
• Ghangis Kahn
• Alexander the Great
• Julius Caeser
• Napoleon Bonaparte

13
How did these men lead?

• They were the men on the white horse
• Generals were empowered and taught
• Leaders fought the same battle
• Vision or death
• Communications were difficult

14
Strategic planning used to be taught by generals,
captains and kings.

• Officers determined the strategy
• Worked with small groups to set goals
• Set-up mock battles on tables
• Main leader had to build team to insure success
  10 days ride.

15
Communication and transportation along with
management theory changed the view point.

• Prior to 1870 the largest firm in the world was
  around 600 employee
• James Watt and Financier Bolton
• 1870 Transcontinental Railroad had 26,000
  employees

16
Shift in management

• 1850s 1980s
• Ford, Carnegies, Eisenhower
• Leaders were at the top and distanced
• Levels of management
• Did not fight the same battle
• Communications and transportation changes
• Auto, train, plane
• Telephone, telegraph, print

17
Returning to history

• Coaching and Mentoring Returning
• Virtual Companies
• Veriphone
• Communication tools
• Cell, email, intranets, internet, extranets
• EDS, Sam Walton, Steven Jobs
• 21st Century Streamlining

18
Role of leadership is to think things through
first.

• United Way Approach

19
In todays world strategic tools would consist of

• JIT Financials (Ratios)
• Critical Path Method
• Logistical Queuing Theory
• Order Qualifiers Order Winners
• Cash Flow Analysis
• Stage Gate Process
• Product Profiling
• Etc

20
Before we go any further you may be asking about
the human element

• How do you build teams?
• How do you get people to agree?
• How do you communicate an idea?
• How do you get everyone moving in the same
  direction?
• How do motivate people?

21
You already know

• You must take an active role in the employees
• You must show interest in the employees
• You must give them direction
• You must walk the floor
• You must manage conflict before it erupts
• You must get buy in
• You must be an example
• These are during and after your role is initiated

22
You lead through a lot more?

• Creating a a vision other can believe in.
• Creating systems that make them successful
• Being prepared
• Having the ability to transfer the ideas
• Meeting others expectations and dreams
• Allowing others to rejoyce
• Reaching gut instinct areas of human nature
• Building value

23

• Steven Jobs taking over Apple
• Welch transforming GE
• Travelers and Citibank Merger
• Daimler Chrysler takeover strategy
• Kodaks loss of life
• Herb Kellers approach or Sam Waltons
• Gandhi, Martin Luther King, Joan of Arch, Attila
  the Hun, Napoleon, George Washington

24
Just dont put these first!!! First day
announced as the CEO of a large public company.
What happens?
25
The rule of 80/20 for total management strategy

• A firms ability to compete and employees ability
  to succeed is driven primarily by the structure
  the firm has to offer. The role of management is
  to thinkdesign the structure, processes and
  goals to insure the probability of success.

26
Lets return What are tactics?

• Systems that streamline a business.
• Tools that empower employees to carry out the
  strategy.
• Whats often missing in strategic planning.
• The methodologies that employees follow each day.
• Process to insure predictable reliable results.

27
What the difference between a strategy and a
tactic?

• Strategies
• Determine Outcomes

• Tactics
• Insure Outcomes

28
Sugarbush Ski School

• Most profitable part of the mountain
• Average wait used to be 1 hour each morning
• Management did not understand their role
• 2.5 hours changed the focus from the magic
  moment to cattle.
• Changed the role from teamwork to decision making
• Within one day the line queue dropped to 10
  minutes
• No technology changed.

29
How it worked for years
Adult Private Lessons
Kids Counter and Customer Service
30
What we changed

• Leadership made decisions
• Customer became active in the process filling out
  forms
• Director met every customer to find 30 had no
  need to be in the line
• Doors adjacent to the line had handles removed to
  terminate backwash
• Best processing employee put in position 1
• No magic momentspeed targeted. Customers as
  Cattle

31
Final Look
Adult Private Lessons
Kids Counter and Customer Service
Customer Form Counter
Greeter
32
Strategic Tools

• Order Qualifiers Order Winners Terry Hill
• Developmental Funnel Wheelright and Clark
• Alliances Lorange and Roos

33
Order Qualifiers Order Winners

• Order Qualifiers
• Identifies what your organization must have in
  terms of assets, personnel, education, etc. to
  enter the market

• Order Winners
• Identifies what a firm must do to win in an
  industry while at the same time spots strengths
  in your firm or in competition

34
Example Specialty Cup Printer Manufacturer

• A midsize firm on the east coast offers custom
  manufacturing and custom printing to customers
  throughout the nation. The firm offers all
  elements from design to 4 color printing.
  Typical run is 20,000 units and a minimum run is
  1000 units.

35
Specialty Cup Printer Manufacturer

• Order Qualifiers
• Capacity to store 500,000 units
• High speed automatic production
• 4 spot color printing and pad printing
• Credit line
• Catalog on line and paper
• 4 day turn around
• Pricing around 1.20 per cup

36
Specialty Cup Printer Manufacturer

• Order Winners
• 48 Hour specialty service
• 4 Color process printing
• 2,000,000 cups in stock
• 16 colors
• Website and online ordering
• Brand name
• Patented production process
• Internal cup manufacturing vs. outsourcing

37
Conversion of idea
Internal Forces Management Time Funds
External Forces Vendors Customers Market
Conditions
38
Why might the process limit the success of the
product

• Not enough ideas
• Research misdirected
• Management late entry
• Resources not reviewed or wasted
• Not tied to strategy (poor strategy)
• Cannot be taught
• Missed opportunities
• Risk assessment overlooked 9/11 Shift

39
Objective is to increase the probability of
success

• Increase Mouth
• Narrow Scope
• Develop and Execute

40
Increase Mouth

• Customers
• Vendors
• Focus Groups
• Industry
• Customer Service
• Consultants
• Trade Journals
• Existing Products
• Magazines/Books

• Surveys
• Sales Force
• Competition
• Mailings
• Web
• Employees
• Associations
• Friends
• Trade Shows

41
Alliances

• Why is it important to understanding alliances?
• Expand quickly
• Leverage company
• Education
• Gain sales force
• Grow faster
• Meet needs

• Who do we develop alliances with?
• Employees
• Vendors
• VCs
• Banks
• Media
• Customers

42
Alliances

• Alliance Relocation Services
• 3rd party services in the moving business
• Several million dollar firm looking to expand
• Secured the single largest contract of its kind
  in the business in 2002
• Became the sole source for their national offices
  as they wished to develop stronger relationships
  with one firm.

43
7 Types of Alliances
44
Statistics on Alliances

• Hergert Morris 1988
• 71.3 of alliances are between rivals
• 37.1 of alliances are for new products
• Reasons for alliances
• 35 Competition or Distribution
• 25 New Technology
• 20 Economics of Scale
• 20 Legal or Regulatory

45
Did you ever wish to be a part of a loosing team?
46
We must make employees successful?

• Factoids - Standish Group
• 1994 Project success rates were 16.7. 1998 the
  rates rose to 26.
• In 1994 the chance of a project developed by a
  Fortune 500 company coming in on time and within
  budget was 9.
• In 1998, the chance of that same Fortune 500
  project succeeding rose to a whopping 24
• http//standishgroup.com/visitor/chaos.htm

47
Garry Bernett

• Northwestern University
• 20 Years loosing seasons
• Solutions

48
Summary

• Leadership is the active role of thinking things
  through.
• Leadership makes people successful
• Leadership understands the tools available
• Leadership involves people and knowing what they
  need
• Leadership is as varied as there are people.

49
Coin Toss
50
Contact Information

• David A. Goldsmith
• MetaMatrix Consulting Group LLC
• 927 East Colvin Street
• Syracuse, NY 13221
• E-mail dgoldsmith_at_davidgoldsmith.com
• Voice [phone]
• www.metamatrixconsulting.com